FG targets 250,000 vehicles for CNG conversion yearly, signs MoU with transport unions

The federal government says a memorandum of understanding (MoU) has been signed with key stakeholders in the transport unions to facilitate the conversion of vehicles to compressed natural gas (CNG).

The federal government started canvassing for the adoption of CNG after President Bola Tinubu announced the end of subsidised premium motor spirit (PMS), also known as petrol, on May 29, 2023.

On August 19, 2023, Tinubu announced the establishment of the CNG initiative, stating that the initiative would ease the impact of the petrol subsidy removal on Nigerians by reducing energy costs.

Speaking on Thursday at the conversion centre in Kaduna, Folarin Oworu, programme coordinator of the presidential compressed natural gas initiative (PCNGi), said 250,000 vehicles are being targeted for CNG annually starting from 2025.

Oworu said the pioneer beneficiaries of the conversion programme are commercial vehicles.

He said the conversion process in Kaduna began with 100 conversion kits and the next rally location would be in Lagos.

The PCNGi coordinator said the conversion initiative would cover all 36 states before the end of the year.

“What we are doing in Kaduna today is front-to-back CNG conversion mobilisation,” Oworu said.

“Mr. president has decided to make conversion free for the road transport unions, that is, the NURTW, NATO and other road transport unions.

“The idea is to bring down the cost of commercial transportation by converting the vehicles of transport unions to make their running cost cheaper.

“The idea is for them to translate this savings up to the end users by making transportation cheaper.

“We are starting here in Kaduna, and from Kaduna, we shall move to Lagos, and before the end of the year, we would have gone round the whole 36 states.

“The signing of the MoU was done by the conversion partners we have at the various locations where commercial vehicles will go and have their vehicles converted.

“The conversion kits are one 100 per cent free. The conversion cost is 100 per cent free. That is the agreement in the MoU.

“So we are targeting close 250,000 conversion of vehicles per year, starting from next year.

“The conversion kits are worth N1 million to N1.5 million depending on the type of kits you have.”

In his remarks, Najim Usman, a former national president of NURTW, commended the president’s PCNGi agenda.

He thanked the president for his support to the transport sector and the decision to offer free conversion kits for commercial vehicles, which are expected to benefit one million vehicles.

Usman urged all transport unions to participate in the programme aimed at reducing transportation costs.